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Working capital is required for the initial as well as regular operations sources of funds for w c are banks ,public

deposits ,inter-company loans, &financial institutions. The rate of interest on these source are generally higher. Besides this, the security to provide to the lender is also an issue. W c may be regarded as the life blood of business enterprise.

Those current assets, which are convertible in to cash, within a period of one accounting year. and Those funds needed for meeting day-to-day operations.

Gross working capital : total current assets.

Net working capital : difference between Current asset & current liabilities.

Working capital=current assets current liabilities.

.On the basis of time. Fixed working capital. variable working capital. .On the basis of concept. Gross working capital. Net working capital.

Working capital is life blood of business enterprise. Every enterprise is not fortunate enough to conduct its total business with cash sales. Credit sales are common in, almost, every form of business. To support credit sales w c is needed in the form of current assets. W c is required to carry on day- to- day business activities.